The euro hit seven month low on Tuesday after Boston Fed President Eric Rosengren said late Monday a rate hike in December would be appropriate if the economy continued to improve. The euro weakened 0.3% against the dollar. European stocks advanced on Tuesday supported by a weak euro and gains in Vodafone offset losses in mining shares. The Stoxx Europe 600 rose 0.1%. Vodafone rose 3.9% after raising its annual earnings outlook. So far 50% of STOXX 600 companies that have reported earnings have beaten or met expectations. Portuguese shares underperformed on political uncertainty after antiausterity parties formalised a deal to oust a minority centre-right government. Mining shares fell as data showed disinflation persists in China, indicating falling demand in a major buyer of commodities. Barclays downgraded its view on the mining sector to neutral. Today At 10:30 CET job market data will be released in UK. The tentative outlook is positive. At 12:30 CET Bank of England Governor Carney speaks. At 15:15 CET European Central Bank President Draghi speaks at the Bank of England's Open Forum in London.
Nikkei live data show the index edged 0.1% higher today, advancing for six consecutive sessions in a row. Tomorrow at 00:50 CET September Machine Orders will be published in Japan. The tentative outlook is positive. At the same time financial data on foreign and domestic purchases of bonds and stocks will be released.
Economic data today indicated industrial output in China rose 5.6% in October from a year earlier, matching January through March’s reading which was the weakest since 2008. The lower than expected growth in industrial output together with a fixed-asset investment, which increased at the slowest pace since 2000 - 10.2% in the first 10 months, adds to indications of continued economic slowdown in China. The report will add pressure on industrial metals which are falling as slowing growth in China lowers the demand for metals.
Oil prices are sliding today after closing higher previous day on expectations of lower US output. US Energy Information Administration report on Monday forecasted oil production from seven major shale fields is expected to decline in December from a month earlier. December Brent ended at $47.44 a barrel on Tuesday, up 0.5% on London’s ICE Futures exchange.
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